The IMF reports that the West African Economic and Monetary Union (WAEMU) has shown resilience so far in the face of both internal and external shocks, with growth estimated to grow by 6.8 per cent between 2034 and 2025, largely as a result of changes in the oil and gas sector.
The economic growth of WAEMU is projected to average 6.8 per cent in 2024-2025 and stabilize at 6% in the long term, according to estimates by the International Monetary Fund (IMF). The institution revealed these figures following the annual discussions on the common policies of the Union’s member countries.
In a statement released on March 19, IMF attributed this positive trend to the start of new hydrocarbon productions. Indeed, several member countries of the Union, notably Senegal, Côte d’Ivoire, and Niger, have announced the commencement of natural gas fields and an oil pipeline.
Moreover, IMF highlighted a forecast of fiscal consolidation aimed at reducing the deficit to 3% of GDP in the majority of member countries by 2025. “The completion of these hydrocarbon projects, together with fiscal consolidation, would lead to a quick narrowing of the current account deficit, and contribute to a gradual rebuilding of external reserves,” the statement read.
These forecasts come at a time when the Union’s economic activity has shown a positive trend, supported by strong domestic demand and the continuation of public investments as of the end of November 2023, according to the Central Bank of West African States (BCEAO). Industrial production has increased by 4% year-on-year, with significant increases in retail sales, as well as in merchant and financial services.
